NORTH-EAST jobs could be at risk if two energy companies are allowed to merge, it has been claimed.

The GMB union wants Npower’s proposal to create a new UK supplier alongside SSE thrown out, saying it will damage careers and create an industry cartel.

Npower, known for running a flagship call centre in Houghton-le-Spring, which provides employment for more than 2,000 people, told The Northern Echo no decisions have been made on staffing numbers.

A spokeswoman added nothing will happen in the short-term, since the approvals process for the proposed merger is expected to take at least a year.

The deal will see Npower’s parent company Innogy and SSE create a new domestic energy supply and services business.

However, GMB said it wants the Government to block the deal, and officials have written to Middlesbrough-born Business Secretary Greg Clark to state their case.

Justin Bowden, national officer, said: “This is an obviously worrying time for Npower and SSE employees, who will be concerned that job cuts will inevitably follow a merger.

“Should the merger be allowed to proceed, it will lead to the cartelisation of a market that will be without competition, effective oversight or strong central direction.

“We risk a private cartel if the merger is given approval.”

Npower’s Houghton-le-Spring base deals with electricity and gas complaints, with a sister centre in Peterlee, east Durham, dealing with customer queries over energy efficiency issues.

SSE, formerly known as Scottish and Southern Energy, is Britain’s second largest energy supplier and says the merged group will serve around 11.5 million customers.